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Today’s newsletter features Hassan Ahmed’s analysis of the cryptocurrency landscape in Asia, including stablecoins and relevant regulations. He contrasts the region’s growth with areas that have clearer rules.
Next, Xin Yan, the CEO of Sign, will be answering questions about how cryptocurrency and stablecoins are gaining popularity in Asia in a segment called “Ask an Expert.”
Crypto Adoption In Asia: What Advisors Need To Know
The reality of crypto in Asia
The common belief that Asia is just starting to explore cryptocurrency is no longer accurate. Asia is actually a leading market for digital assets. Many Asian countries are now actively integrating things like stablecoins into their financial systems – for everyday payments, settling transactions, managing company finances, and sending money internationally – and see these assets as much more than just investments.
The most compelling proof of growth comes from stablecoin activity in Asia. In 2025, the region saw $12.5 trillion in stablecoin transactions, a significant 67% increase from the $7.5 trillion recorded the previous year – the highest volume of any region worldwide. This surge isn’t driven by risky speculation; instead, it demonstrates practical use, with businesses and individuals leveraging stablecoins for quicker and more affordable international money transfers.
Singapore as a case study
Singapore is a great example of how effective crypto regulation can work. A recent study by Coinbase and MoneyHero Group showed that 61% of Singaporeans interested in finance now own cryptocurrency. What’s really notable is the rapid increase among younger generations – Gen Z crypto ownership doubled in just one year, going from 18% to 36%. This is a big change from the beginning, when crypto was mostly held by tech experts and those who were quick to try new things.
Singapore’s success in this area wasn’t accidental. Over nearly ten years, the country intentionally created a clear path for regulation, working closely with the industry every step of the way. They began exploring blockchain technology as early as 2016 with Project Ubin, and then created rules for digital payment tokens through the Payment Services Act. This continued with trials of decentralized finance (DeFi) for institutions in 2019, Project Guardian in 2022, and most recently, BLOOM in 2025, all aimed at strengthening the underlying infrastructure.
Singapore has created a thriving market where clear regulations, strong financial systems, and active businesses all work together seamlessly. We’re already seeing the impact: the country now hosts over 700 fintech companies and more than 300 Web3 businesses, with institutional crypto trading reaching billions of dollars. Rather than being an exception, Singapore is showing the world a glimpse of what future financial markets will look like.
Significant use cases across Asia
Adoption of cryptocurrency in Asia varies greatly from country to country. Unlike other parts of the world where crypto is often used for one main purpose, Asian countries are pioneering different applications, driven by their unique rules and economies. This shows that crypto can serve as a versatile financial system. Hong Kong, Korea, and India are good examples of this diverse adoption.
Hong Kong is becoming a major center for digital asset activity by carefully testing new ideas and creating clear rules. In 2024, it approved exchange-traded funds (ETFs) for both Bitcoin and Ether, allowing institutional investors to directly and legally invest in these cryptocurrencies. More recently, in early 2026, licenses were granted to groups led by HSBC and Standard Chartered to issue stablecoins. This shows that Hong Kong wants traditional financial institutions to be fully involved in the digital asset world, not just watch from the sidelines.
India’s growing interest in cryptocurrency is unique – it’s fueled by people needing ways to manage their money, rather than strong official systems. The country now boasts the world’s largest number of crypto users – around 119 million – who send over $100 billion in payments each year. This is made possible by India’s strong digital infrastructure, particularly the Unified Payments Interface (UPI), which handles more than 20 billion transactions monthly. Plus, with so many people using smartphones, crypto is becoming popular not just in big cities, but throughout the country.
South Korea is a leader in cryptocurrency adoption. About 33% of Korean adults own crypto, significantly higher than the roughly 16.5% in the US. Trading activity on Korean exchanges reached around 1.76 trillion Won by the end of 2025, showing that crypto trading is now a common financial activity for many Koreans. Regulators are responding to this growing demand by working to create a more structured and regulated market, recognizing that crypto has moved beyond its initial niche phase.
Future outlook
The focus now needs to be on making different systems work together, rather than simply encouraging use or creating rules. Asia has already done well with regulations and has a solid base of both institutional and individual users. However, separate, unconnected markets are still holding things back. Future growth relies on countries working together. A common set of standards would allow money and users to flow more easily between countries, removing obstacles and unlocking the region’s full potential.
The CLARITY Act is expected to become a leading international standard. Because the United States has the world’s largest economy, its regulations often influence other countries. As a result, regulators in Asia will likely need to revise their own rules to remain competitive and up-to-date.
Over the next year, financial advisors should pay attention to how stablecoins are moving across borders, whether new regional payment systems develop, and how quickly individual Asian countries adapt to the CLARITY Act. Asia’s future in the world of finance will depend on forward-thinking policies and cooperation between countries in the region.
– Hassan Ahmed, country director, Coinbase, Singapore
Ask an Expert
How might the economic conditions in Asia affect the future use of cryptocurrencies and stablecoins?
As a researcher studying digital currencies, I’ve found Asia to be a key driver in the real-world use of stablecoins. We’re seeing significant adoption, especially for everyday payments, sending money across borders, managing company finances, and facilitating international trade. My data indicates that over half of the institutions in the region are *already* using stablecoins, and many more are actively testing or planning to integrate them into their operations.
Stablecoins are quickly becoming a key part of how payments are made in Asia. A new system is developing that allows people to send and receive payments instantly, using stablecoins and multiple currencies, making it easier to travel and pay in different countries.
Given the current situation in Asian markets, what guidance would you offer to investors and financial advisors who are considering adding more cryptocurrency and stablecoins to their investment portfolios?
Stablecoins aren’t meant for making quick profits; their benefit lies in what they *do*, not how much their price goes up. As the name suggests, they’re built to hold a steady value. Because stablecoins are becoming so popular, it’s important for investors and financial advisors to understand the difference between investing in cryptocurrencies and the growing financial systems that are powered by stablecoins.
With clearer rules for cryptocurrency emerging in Asia, we can expect fast growth in areas like on-chain foreign exchange, international money transfers, business payment systems, and digital treasury management. This means the real investment potential isn’t in the cryptocurrencies themselves, but in the applications and services being built using them.
As a researcher, I’ve been looking into the companies and systems that are being built using blockchain technology for direct settlement and to create new kinds of financial tools. This includes businesses, payment networks, the companies providing the underlying infrastructure, and the financial apps themselves – all leveraging the power of on-chain transactions and programmable money.
As a crypto investor, I definitely think regulations are going to reshape how crypto is treated here. It’s not just about waiting for the rules to come, though. I believe financial advisors need to proactively adapt *now*. We can’t just stick to old strategies and expect them to work in this new landscape. It’s time for a fresh approach to advising clients on crypto investments.
Financial regulators throughout the region are starting to agree on basic rules, which is great news for companies that do business in multiple countries.
The digital asset landscape in this region is evolving. It’s moving away from risky, loosely controlled markets and toward more established systems that prioritize rules, licensing, and security. These new frameworks include things like guaranteed buybacks and protections for consumers, making it easier for banks and businesses to get involved.
Because different regions are adopting these concepts at their own pace and based on what’s most important to them, regulations are starting to align, making it easier for crypto businesses to understand and follow the rules.
As different countries align their rules, it’s becoming easier for financial advisors to understand and apply compliance procedures. However, it’s still important to carefully check the specific requirements of each region.
Financial advisors need to move beyond the traditional, early ideas about cryptocurrency and focus on how it’s being used within regulated financial systems. As stablecoins become a core part of how money moves, those who understand both traditional finance and blockchain technology, and are creating solutions for the new regulatory landscape, will be most successful going forward.
– Xin Yan, CEO, Sign
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2026-05-28 18:03